Archive for February 9th, 2018

LiveTrucking reported yesterday that a self-driving semi truck from Embark just completed its first cross-country trip.

Unlike in “Smokey and the Bandit,” the self-driving software did not have to pick up a case of beer in Texarkana along the way, and never had to stop to use the restroom.

The tractor trailer completed a 2,400 mile trip from LA to Jacksonsville, Florida in five days, and according to Embark’s CEO, Alex Rodriguez, the truck traveled for “hours at a time with no disengagements.”

The technology used in the Embark truck includes machine learning software, as well as data from five cameras, three long-range radars, and two light detecting sensors so that it may map its surroundings in real time.

But lest ye be worried about all those trucks displacing us humans, there was a real person in the truck for the entire ride, and the human took over whenever the truck got off the highway to unload or traverse local roads.

For now, the machines and humans are working together, according to Embark.

“By allowing automation to work together with local drivers to handle less desirable long haul routes, we will be able to increase productivity to address the current 50,000 driver shortage while also creating new local driving jobs that attract younger drivers for the industry,” Rodriguez said.

For me, this new technology just won’t be complete until the autonomous truck can get on a CB radio and report “There’s a bear at your back door!”

Okay, maybe just a peek. After yesterday’s 1,000+ rout, and at last count, it was heading back north, slowly but surely.

But if you’re a long-term investor, you shouldn’t play these peak and valley games, right? Stop paying attention to that ticker and get back to work!

As for getting back to work, guess who’s getting into the delivery business? I’ll give you one guess.

No, not Domino’s pizza (at least not yet). Amazon!

The Wall Street Journalreported this morning that Amazon.com is preparing to launch its own delivery service for businesses, putting it in direct competition with UPS and FedEx.

No, to answer your inevitable question, there is not a single business or industry won’t consider entering and disrupting.

Amazon’s push into logistics reflects its growing ambitions across a wide range of new businesses beyond online retail. The company runs a dominant cloud-computing services division, a Hollywood studio and a massive marketplace and logistics operation for sellers. Last year, it acquired Whole Foods for roughly $13.5 billion, transforming it into a brick-and-mortar grocer overnight.

The new service will be called "Shipping with Amazon," and will have the company picking up packages from businesses and shipping them to consumers.

It is the latest move by Amazon to create its own freight and parcel delivery network. In the last couple of years, Amazon has expanded into ocean freight, built a network of its own drivers who can now deliver inside homes and leased up to 40 aircraft while establishing an air cargo hub.

But as the Journal story reports, there’s steep (and deep-seated) competition from the incumbents:

It remains to be seen whether Amazon can successfully deliver packages for other businesses on a broad scale. UPS and FedEx have built out massive networks over the course of decades to allow them to deliver across the U.S. And it is expensive. UPS this year alone is​ ​planning to spend up to $7 billion on upgrading its delivery network.​

In a related story yesterday, Amazon said it would begin delivery of Whole Foods groceries via its "Prime Now" service. Shortly, Whole Foods’ customers in Austin, Dallas, Virginia Beach,a nd Cincinnati will have the option of one – and two-hour grocery deliveries.